Stricter controls on foreign investments in Cyprus

The Parliamentary Committee on Financial Affairs has begun discussing the revised bill on the National Mechanism for the Control of Direct Foreign Investments. The bill aims to align Cyprus with European practices, imposing stricter controls on investments of strategic importance.

According to the Ministry of Finance, the most important amendments include the definition of strategically important enterprises, the exemption of investors from EU, EEA and Swiss countries, the obligation of timely notification by the foreign investor and the introduction of a minimum investment notification threshold of €2,000,000. An exception is foreseen for ships, excluding floating natural gas units.

Interested parties such as KEBE, OEB, the Pancyprian Bar Association and others agreed with the legislation, while TechIsland expressed a desire for an exemption for the technology sector.

The Chairman of the Committee on Financial Affairs, Christiana Erotokritou, stressed that the bill strengthens development and shields Cyprus. AKEL MP, Andreas Kaukalias, said his party would study the provisions of the bill.